On Friday, gold financing firm Muthoot Finance said it completed an advance on a $225 million external commercial borrowing (ECB) on April 13.

External commercial borrowings are commercial loans widely used by qualifying resident entities that raise ECB from recognised non-resident entities. The ECB should adhere to criteria such as minimum maturities, maximum aggregate cost caps, and permissible and non-permissible end uses.

Following the advance payment, the company has taken steps to cancel the senior secured notes issued by the company under the GMTN scheme and listed on the London Stock Exchange (LSE) International Securities Market, the company said in an exchange filing.

Muthoot Finance further stated that the advances on external commercial borrowings follow applicable laws, including the RBI’s key directives on external commercial borrowing, trade credit and structured debt dated March 26, 2019.

Last week, the Kochi-based company declared an interim dividend of Rs 22 per share for FY23.

The company reported its third-quarter earnings in February. Muthoot Finance’s profit plunged more than 12% to Rs 901.6 crore from Rs 1,028.9 crore a year earlier. Its net interest income (NII) also fell nearly 10% to Rs 1,704.3 crore from Rs 1,886.1 crore a year earlier.

Shares of Muthoot Finance traded at Rs 1,033 per share at the market close on April 13, 2023, marking a gain of more than 0.8%.

Established in 1939, Muthoot Finance is an Indian financial company and the largest gold-lending NBFC in India. In addition to financing gold loans, the company provides other forms of lending, insurance and remittance services and sells gold coins.